Andhra Pradesh based Eluru Cooperative Urban Bank is planning to extend its operational area across the entire state and aiming for a business mix of Rs 250 crore by the end of the current financial year.
The 100-year-old bank has been on a steady growth trajectory, consistently increasing its business while focusing on the financial needs of street vendors, playing a vital role in their economic upliftment.
Chairman Ambica Prasad has been instrumental in this success, having served as the bank’s Chairman for over two decades and having a strong hold. Notably, despite being a relatively small cooperative bank, Eluru Cooperative Urban Bank boasts a sprawling headquarters in Eluru, outshining many cooperative banks of its size in terms of infrastructure.
Talking to Indian Cooperative at the bank’s headquarters, Prasad remarked, “We are continuously on a growth path, setting new milestones every year. Our current business mix stands at Rs 232 crore, but we are confident of surpassing Rs 250 crore by the end of this financial year,”he said.
He added, “Our area of operation is presently limited to seven districts of Andhra Pradesh, but we have plans to expand state-wide. Currently, we have five branches, and we are planning to open a new branch in Rajahmahendravaram soon ”, said Prasad, who is also on the board of the Andhra Pradesh Urban Cooperative Banks Federation.
In an interesting development, Prasad shared, “We are also exploring the possibilities of taking over other cooperative banks. We are open to proposals from cooperative banks in Northern India that may wish to merge with us, which could help us transition into a multi-state cooperative bank,” he informed.
When asked about contributing to the National Urban Cooperative Finance and Development Corporation (NUCFDC), set to act as an umbrella organization for Urban Cooperative Banks (UCBs), Prasad responded candidly, “To tell you the truth, we are still not fully aware of how the NUCFDC will operate or how it will benefit banks like ours. There needs to be more clarity on its objectives and framework before we can decide on our involvement”, he said.
As of March 31, 2024, the bank’s gross and net NPAs stood at 2.93 percent and 0.15 percent, respectively. The CD ratio was recorded at 65.90 percent, and the bank maintained a CRAR of 13.57 percent.
In the financial year 2023-24, the bank earned a net profit of Rs 74 lakh. The institution is also equipped with all modern banking facilities, ensuring smooth and efficient operations for its customers.
It’s worth recalling that the bank recently made headlines for its social responsibility by contributing Rs 1 lakh to the Chief Minister Relief Fund to support the Vijayawada flood victims.